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Tread Inc., a sports shoe manufacturing company, began its campaign by spending one million dollars on advertising. Currently, Tread Inc. spends 200 million dollars on advertising. Initially, the advertisements contributed to the gradual increase in returns, but the company now confronts diminishing returns. In this scenario, which of the following phenomena explains Tread Inc.'s diminishing returns?


A) A unique selling proposition
B) The advertising response function
C) Switch and bait advertising
D) Strategic advertising

E) All of the above
F) B) and D)

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_____ is the element in the promotional mix that evaluates the public's attitudes, identifies issues that may elicit their concern, and executes programs to gain their understanding and acceptance.


A) Personal selling
B) Cooperative advertising
C) Sales promotion
D) Public relations

E) A) and B)
F) None of the above

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Duski, a very expensive brand of clothing and accessories, promotes its products by appointing famous personalities as its brand ambassador. Given this information, which of the following advertising appeals is used by Duski?


A) Health
B) Fear
C) Convenience
D) Admiration

E) A) and D)
F) A) and C)

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Explain the importance of media planning in advertising.

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Answers will vary. A major decision for ...

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Which of the following models does an advertising campaign often follow?


A) BCG matrix
B) IMC model
C) AIDA model
D) SWOT matrix

E) None of the above
F) B) and C)

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If an advertiser wants to enhance the sales of a specific good or service, institutional advertising should be used.

A) True
B) False

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Corporations often use advocacy advertising to express their views on controversial issues.

A) True
B) False

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_____ is the series of decisions advertisers make regarding the selection and use of media, enabling the marketer to optimally and cost-effectively communicate the message to the target audience.


A) Media planning
B) Cost per click
C) Media fragmentation
D) Cross-media advertising

E) B) and C)
F) All of the above

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People who buy a competitor's product most or all of the time are price buyers.

A) True
B) False

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Kelly's Kitchen, a popular chain of fast food restaurants, offers a kids' meal pack free with every purchase of its newly introduced luxury meal pack. In this case, which of the following types of sales promotions does Kelly's Kitchen offer?


A) Trade allowance
B) Push money
C) Rebate
D) Premium

E) A) and C)
F) C) and D)

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The Federal Trade Commission does not allow the identification of competing brands in comparative advertising.

A) True
B) False

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Which of the following is a difference between pioneering advertising and competitive advertising?


A) Pioneering advertising is used to promote a company's image, whereas competitive advertising is used to manage customer criticisms.
B) Pioneering advertising is a form of institutional advertising, whereas competitive advertising is a form of advocacy advertising.
C) Pioneering advertising is used during a product's introductory stage, whereas competitive advertising is used during a product's growth stage.
D) Pioneering advertising compares competing brands, whereas competitive advertising is intended to stimulate primary demand for a new product.

E) C) and D)
F) A) and C)

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_____ is the ability of an advertising medium to reach a precisely defined market.


A) Audience selectivity
B) Target sensitivity
C) Projection efficiency
D) Target efficiency

E) A) and D)
F) B) and C)

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Which of the following is a difference between an attribute and a benefit of a product?


A) An attribute includes pleasure or improved health, whereas a benefit includes an easy-open package or a special formulation.
B) An attribute cannot be experienced by consumers, whereas a benefit is tangible and can be experienced.
C) An attribute is the goal to sell a product, whereas a benefit is an apparent part of a product.
D) An attribute is simply a feature of a product, whereas a benefit is what consumers receive by using a product.

E) A) and B)
F) C) and D)

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In the context of campaign evaluation, testing ad effectiveness can be done only after the advertising campaign is over.

A) True
B) False

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Fournotts Corp., a sports shoe manufacturer, launches a new line of sports shoes. As a part of its promotion, Fournotts Corp invites its customers to try on the shoes for a period of one week and get a feel of its features. This is an example of _____.


A) corporate communication
B) sponsorship
C) product placement
D) experiential marketing

E) A) and D)
F) C) and D)

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Which of the following statements is true of pioneering advertising?


A) It offers consumers in-depth information about the benefits of the product class.
B) It is heavily used during the growth stage of the product life cycle.
C) It is used to enhance a company's image rather than promote a particular product.
D) It is used mainly to compare brands on one or more specific attributes.

E) A) and B)
F) B) and C)

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Which of the following is a similarity between trade sales promotion and consumer sales promotion?


A) Both focus on providing incentives to consumers or wholesalers to make an immediate purchase.
B) Both are directed to members of the marketing channel, such as wholesalers and retailers.
C) Both aim to increase sales by using point-of-purchase display.
D) Both aim to segment a market based on its characteristics.

E) A) and B)
F) All of the above

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_____ is the number of times an individual is exposed to a given message during a specific period.


A) Reach
B) Life span
C) Frequency
D) Contact

E) A) and B)
F) C) and D)

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Laelle Corp., a furniture manufacturing company, uses marketing efforts like paid television commercials and magazine inserts to publicize its products. These are examples of activities associated with:


A) advertising.
B) franchising.
C) personal selling.
D) nonstore retailing.

E) B) and C)
F) A) and B)

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